TORONTO – May 07, 2012: Urbanation Inc., the leading source of information and analysis
on the Toronto condominium market since 1981, today released its Q1-2012 market overview.

The new condominium apartment market in the Toronto CMA saw 6,070 sales in Q1-2012, the
highest of any first quarter on record. The 338 active projects and 84,698 active units were also
record highs. The average of 18.0 sales per project, however, was lower than in Q1-2011 (18.3)
and Q1-2010 (20.4)

"Despite the record sales in Q1-2012, Toronto CMA brokers and developers still report anxiety
about the future health of the condo market," says Ben Myers, Urbanation Executive Vice
President and Editor. "The probability of a market crash or major price correction is very small,
but the prevalence of media coverage for this outcome remains high."

Despite this, investors and end-users continue to buy. The average sold price index increased to
$519 psf in the Toronto CMA, an increase of 2.0 per cent quarterly and 8.1 per cent annually.
The average unsold unit is being offered at $566 psf in the CMA. Urbanation estimates that the
average price in the new market is $393,000 with an average size of 757 sf.

The resale market was weaker, with resale index pricing decreasing quarterly for the first time
since the recession-impacted Q1-2009, falling from $400 psf in Q4-2011, to $396 psf in Q1-
2012. That drop represents a 1.0 per cent quarterly decline, although annual growth remained
positive at 3.7 per cent. The average resale price also dropped 1.0 per cent quarterly, from
$361,000 to $358,000, although it rose 3.8 per cent year over year.

While resale pricing data seems to indicate the market is slowing, there were, in fact, just 64
fewer re-sales in the first quarter, compared to a year earlier (3,888 vs. 3,952), while the average
days on the market remained unchanged at 30. In addition, fewer units have sold in newly
registered buildings; these new units typically pull the resale average up. Less resale listings in
newly registered buildings suggests a larger share of long-term investors, as opposed to
speculative 'flippers'.

In its Q4-2011 release, Urbanation identified unsold supply as one of several potential factors
that could potentially derail the Toronto condominium market. There were 15,554 unsold units at
the end of Q1-2012, an increase of 4 per cent quarterly and 27 per cent annually.

But as financial institutions, especially those that are Canadian based, move to tighten lending,
resulting project cancellations may mitigate the level of unsold inventory.

The market will be further tested in Q2-2012, however, with the potential for as many as 40 new
project launches with more than 11,000 new units that could come to market. If the absorption
rates for new and existing projects remain constant at 55 per cent and 20 per cent in the second
quarter, unsold inventory in the market will still rise to over 17,000 units, nearing the market
high of 17,600 from Q4-2008.

"With the market being much larger now, the question is: Is this higher level of unsold inventory
the new reality?" asks Myers. "Or is it a sign that the market has reached its peak? We'll have to
see."

ABOUT URBANATION

Urbanation is Canada's leading condominium market research company. Since 1981, Urbanation
has analyzed the Toronto condominium market, publishing the "industry bible" – Urbanation's
Condominium Market Survey. This quarterly report tracks new, resale and future condominium
projects. The newest report from Urbanation is UrbanRental, which tracks activity in the
condominium rental market. Urbanation also provides the development community with
essential consulting services, which include site and topic specific market studies and surveys.